Arris Group Inc.
) - a global technology leader in the development of advanced
cable telephony and next-generation high-speed data network - has
launched ARRIS SE-7000 encoder. The introduction of SE-7000, a
fourth-generation video compression system, will help
content developers to create High Efficiency Video Coding (HEVC)
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The encoder will reduce bandwidth requirements by nearly 50% and
will also deliver live HEVC streaming over the MPEG2 TS standard.
Additionally, the technology will support both HEVC and Advanced
Video Coding (AVC) streamings, and IP and baseband SDI
Increased demand for high resolution video content has resulted
in huge bandwidth requirements. Thus, the launch of SE-7000 will
facilitate the delivery of more videos at limited bandwidth
through wireless, DSL or DOCSIS networks.
Arris recently acquired the cable set-top box business of
Motorola Mobility, a subsidiary of
), for a total consideration of $2.35 billion. The acquisition of
will help Arris attain a strong foothold in the video offerings
In the second quarter of 2013, Arris' total revenue was $1,000.4
million, up 186.4% year over year. The Customer Premises
Equipments (CPE) segment of Arris generated $663 million of total
revenue, up by a whopping 344% over the prior-year quarter. The
company stated that 90% of its total CPE shipment was for the
DOCSIS 3.0 network.
Time Warner Cable
) are the largest customers of Arris and have together
contributed 43% of Arris' total revenue. Hence, we believe that
by launching such innovative products the company will continue
to drive its top-line growth.
Currently, Arris Group Inc. carries a Zacks Rank #3 (Hold).